IMF Weekend Read

 

Dear MARIA,   In today's edition, we highlight: Using Data and Statistics for Effective Policymaking Reinforcing Growth in G20 Economies How Europe Can Capture the AI Growth Dividend Sub Saharan Africa: Steady Growth Amid Fiscal Challenges Podcast: Athene Laws on sub-Saharan Africa’s Outlook F&D Archives: The Talent Equation  Chart of the Week: Gold Rush STATISTICS  Using Data and Statistics for Effective Policymaking "In today's world, data and statistics are not optional," said IMF Deputy Managing Director Nigel Clarke, speaking at the IMF’s 13th Statistical Forum. "They are the foundation of effective economic policy making."    The two-day gathering this week focused on how globalization, digitalization, and financial innovation are reshaping international economic interactions and how more accurate and timely data can help better inform policy. “We want to identify gaps, share ideas, commit to supporting policy makers and data users,” said IMF Chief Statistician Bert Kroese.   2024 Nobel laureate Simon Johnson noted in his keynote speech that while it’s clear there’s a need for more timely and accurate data, it also must be transformed into actionable intelligence for policymakers. If you have the information but it’s not coherently collated, “it's much harder to make operational decisions,” he added. Learn More G20 Policy Actions Can Reinforce Growth Progress in Many G20 Economies Growth across the G20 has slowed to just 2.9 percent, the weakest since the global financial crisis. At the same time, public debt rose to a record 102 percent of GDP last year and excessive external imbalances are widening again. But the good news? Reform momentum is building in many economies.   Our new blog finds that smart fiscal policy and high-impact structural reforms, tailored to each country, can help lift growth across the group by about 7 percentage points cumulatively over the next decade. This would benefit emerging market economies the most. Read the Blog EUROPE How Europe Can Capture the AI Growth Dividend AI adoption is accelerating and can meaningfully raise productivity in Europe. But the growth dividend will depend on the right policies, as the AI tide won’t lift all boats equally. Our new blog shows that without additional reforms, the region’s medium‑term productivity boost will be modest—around 1.1% over five years. With a more dynamic policy mix, the payoff could be far larger and longer‑lasting.   Higher‑income and service‑heavy economies stand to benefit most (with cases like Norway approaching 5% productivity boost in an optimistic scenario), while lower‑income economies may see smaller near‑term effects (under 2% for some). To unlock AI’s full potential, Europe needs deeper market integration, flexible regulation, and smarter investments. Read the Blog AFRICA Sub Saharan Africa: Steady Growth Amid Fiscal Challenges Sub-Saharan Africa is home to several of the world’s fastest growing economies—think of Côte d’Ivoire, Ethiopia, Rwanda, and Uganda. Yet resource-dependent and conflict-affected states are struggling to sustain momentum. For them, gains in income per person remain modest—around 1 percent a year, on average, and less in the poorest countries.    Over the past six months, the realignment of global priorities and increasingly turbulent external conditions have continued to test sub-Saharan Africa. Yet the region’s economies are proving resilient. As our recent economic outlook shows, economic growth in the region is projected to hold steady at 4.1 percent this year, with a modest pickup to 4.4 next year. Such steadiness reflects years of important reform efforts across key economies. Read More PODCAST Holding Steady: Athene Laws on sub-Saharan Africa’s Outlook Sub-Saharan Africa is holding its own despite a deteriorating global trade and aid landscape. While the region has once again proven its resilience, what will it take to realize its full potential? IMF Economist Athene Laws is part of the team that prepares the biannual Regional Economic Outlook for sub-Saharan Africa. In this podcast, she says removing barriers to private firm growth is crucial for providing the jobs needed by the region’s young and rapidly expanding labor force. Listen to the Podcast F&D MAGAZINE From the Archives: The Talent Equation  What would the world look like if all young people with exceptional problem-solving talent had the chance to reach their full potential? In The Talent Equation, Ruchir Agarwal and Patrick Gaule explore why high-ability students—especially in developing economies—so often slip through the cracks, and what societies can do to change that.   Drawing inspiration from Srinivasa Ramanujan, an Indian math prodigy, the authors show that brilliance often needs just one crucial intervention: someone who recognizes it and opens a door. They argue that early identification, mentorship, and targeted scholarships can dramatically expand the global pool of innovators. Read More Gold Rush Global demand for gold is surging, and holdings of monetary gold now exceed one-fifth of the world’s official reserves—second only to the US dollar. Bullion's rise has been driven by valuation effects and net purchases, partly reflecting geopolitical factors. LEARN MORE Thank you very much for your interest in the Weekend Read! Be sure to let us know what issues and trends we should have on our radar.  Noha Elbadawy  Editor | IMF Weekend Read   nelbadawy@IMF.org Stay connected with the International Monetary Fund: